MJBizMagazine September 2021 Lighting Buyers Guide - 11

MJBizDaily Buyers Guide Lighting
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ENERGY PRICES, REGULATIONS AND INCENTIVES
Growers should check with local authorities and energy providers for any electricity usage requirements and
possible rebates for purchasing energy-efficient LEDs, Wilmerding said.
Some states, including Massachusetts and Illinois, have taken steps to regulate cannabis energy
consumption, reflecting the large power needs of cannabis grows. Legal U.S. cannabis cultivation in 2017
consumed enough electricity to power 92,500 homes, a city the size of Anaheim, Calif., and is forecast to
increase 162% from 2017 to 2022, according to New Frontier Data's 2018 Cannabis Energy Report.
Restrictions on peak usage hours in Salinas County, where Higginbotham grows, means if he exceeds usage
thresholds during certain hours, his price per energy unit goes up. He avoids peak usage hours by timing his
supplemental lighting to reach his crop's photoperiodic light requirements.
Regional energy prices can also influence what system a grower purchases, van Iersel said. If energy is
relatively cheap and a greenhouse producer is in a region with plenty of sunlight, it may make more sense to
buy HPS lights, which are more affordable upfront but much less energy-efficient than LEDs.
But the big incentives many growers are unaware of are rebates for LEDs, Wilmerding said. In large
operations, the rebate programs can mean significant upfront savings.
But don't count on rebate programs being around forever, Wilmerding said. They vary from state to state.
And some states, such as Oregon, have already run out of funds for LED rebate programs.
11
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MJBizMagazine September 2021 Lighting Buyers Guide

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MJBizMagazine September 2021 Lighting Buyers Guide - 1
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MJBizMagazine September 2021 Lighting Buyers Guide - 3
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